Abstract
This article explores the strategic application of advanced project management methods to achieve significant cost reductions in residential renovation projects. In modern conditions, where clients face challenges such as budget overruns, project delays, low quality, and lack of transparency, this study provides a comprehensive analysis of how project management practices can optimize both financial and operational aspects of renovations. The article advocates for a shift from the traditional interaction pattern in the residential real estate market, where clients typically hire general contractors under «turnkey» conditions, to a more progressive model. In this model, the general contractor acts as a project manager, and all subcontractors are selected through an open and transparent bidding process based on clear evaluation criteria, such as price, quality, and reputation. The general contractor operates under an «open book» principle, with all subcontractor pricing transparent to the client, and the general contractor’s work is compensated as a percentage of the budget. The article emphasizes the importance of involving an independent expert, hired by the client, to assess the effectiveness and transparency of subcontractor selection by the general contractor. This scheme is widely used in large-scale industrial and civil construction projects, but its implementation in the residential market was previously difficult due to relatively small budgets that did not allow for additional oversight and supervision. This study examines the implementation of electronic document management systems, digital project management, and financial accounting as key drivers for increasing the efficiency of renovation projects. A structured approach to contractor management, material procurement, and quality assurance demonstrates how project managers can effectively mitigate risks, ensure compliance with timelines, and deliver high-quality work within the approved budget.
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